Bank of England said to be reviewing Barclays’ handling of private credit loans

A regulatory investigation has been launched into Barclays’ accounting practices, with the Bank of England’s Prudential Regulation Authority examining whether financial derivatives tied to loans in the struggling private credit sector were improperly recorded. The review follows internal whistleblowing by a bank employee, raising questions about potential misreporting that could have inflated reported profits. Authorities are assessing whether standard accounting rules were followed in logging these complex financial instruments. The probe underscores growing scrutiny over transparency in banking risk management.

Concerns financial contracts known as derivatives were incorrectly logged, potentially boosting Barclays’ profitsThe Bank of England is reportedly looking into Barclays’ handling of loans linked to the embattled private credit sector.The Bank’s regulatory arm, the Prudential Regulation Authority (PRA), started reviewing the matter this year after concerns were raised by a Barclays insider, according to the Financial Times. Continue reading...